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nomic burden for both utilities and power customers.Commu- today's technology and customers'priorities.While certain FPA
<br /> nity solar projects owned,in part,by consumers of the electric- revisions may be warranted to address outdated provisions,the
<br /> ity produced by these facilities,may allow utilities to apportion Association would oppose any attempt by Congress to extend
<br /> costs and reduce variability of the system,thus addressing several federal jurisdiction over DG ratemaking or interconnection pro-
<br /> of the issues associated with using DER. cesses.Pursuant to the FPA and subsequent amendments,the
<br /> In 2015 and 2016,energy legislation in the Senate and transfer of electric energy from the DG producer to an end-use
<br /> House included provisions related to DER,including solar DG. utility customer is a retail transaction that must be regulated at
<br /> H.R. 8,the North American Energy Security and Infrastructure the state or local level.
<br /> Act,included language that would have created a new federal
<br /> standard under Section 111(d)of the Public Utilities Regulatory
<br /> Policies Act(PURPA)requiring states and non-regulated utili- American Public Power Association Position
<br /> ties to consider mandating that on receipt of a request,electric APPA believes that DG can and should play an important role
<br /> utilities would offer interconnection service and net billing in public power's renewable energy portfolio,and it supports
<br /> service to community solar facilities.APPA and others in the members'efforts to safely and effectively install and facilitate the
<br /> electric industry opposed this provision because it was duplica- use of DER.In order to continue fostering the growth of DG,
<br /> tive of standards added to PURPA Section 111(d) in 2005 on the Association believes that it is important that DG customers
<br /> net metering and interconnection.It also failed to recognize that pay their fair share of costs to keep the grid operating safely
<br /> these community solar facilities should pay for their use of the and reliably.Thus,rate structures should be designed to reflect
<br /> power grid and ignored retail electric laws in states without retail costs and assure that those who benefit from the grid are sharing
<br /> competition.S.2012,the Energy Policy Modernization Act,did the costs associated with building and maintaining it.Because
<br /> not include any PURPA must-consider requirements,but did community solar projects may address several issues associated
<br /> include language directing the Department of Energy(DOE)to with DG usage,the Association is a proponent of this type of
<br /> undertake net metering studies.APPA had concerns that studies ownership structure for DG facilities.APPA opposes attempts
<br /> could lay the groundwork for future federal net metering policy. by the federal government to nationalize rate design and distri-
<br /> Despite several months of negotiations between the House and bution-related matters that have traditionally been governed by
<br /> Senate to resolve differences between their energy bills,Congress state and local laws.Finally,the Association supports efforts to
<br /> did not pass comprehensive energy reform legislation. protect consumers from deceptive or misleading sales practices
<br /> Still,electric power regulators may now be facing jurisdic- by third-party DG leasing companies
<br /> tional challenges from the federal government.The Federal
<br /> Power Act(FPA),the statute that governs the bulk power
<br /> system,ascribes to the Federal Energy Regulatory Commission American Public Power Association
<br /> (FERC) the authority to regulate the interstate sale of energy,or Contacts
<br /> the sale of energy across state lines.On the other hand,the FPA Desmarie Waterhouse,Vice President,Government Relations,
<br /> reserves for the states the power to regulate the intrastate sale of &Counsel,202-467-2930/dwaterhouse@publicpower.org
<br /> power,or the sale of energy within the state,which is the source
<br /> of authority for states and localities to value DG.Also,PURPA Andrew Wills,Government Relations Director&Counsel,
<br /> imposed on each public utility,subject to minor exceptions,the 202-467-2959/awills@publicpower.org
<br /> requirements to purchase capacity and energy from certain gen-
<br /> erators at the"avoided cost"and to sell needed power services to
<br /> the generator.Since the most recent amendments to the FPA in The American Public Power Association is the voice of
<br /> the Energy Policy Act of 2005,FERC has issued several orders not-for-profit,community-owned utilities that power
<br /> aimed at exercising some level of authority(beyond PURPA) 2,000 towns and cities nationwide.We represent pub-
<br /> over electricity produced at the distribution level.In addition lic power before the federal government to protect the
<br /> to FERC laying jurisdictional claims on issues traditionally left interests of the more than 49 million people that public
<br /> to the states,the U.S.Supreme Court has issued several major power utilities serve,and the 93,000 people they em- -
<br /> decisions suggesting that the limits on FERC's jurisdiction may ploy. Our association advocates and advises on electricity
<br /> extend beyond interstate wholesale sales of electricity and into policy,technology,trends,training,and operations. Our
<br /> the sphere of local retail energy sales. members strengthen their communities by providing
<br /> On September 7,2016,the House Energy and Commerce superior service,engaging citizens,and instilling pride in
<br /> Committee's Subcommittee on Energy and Power held a hear- community-owned power.
<br /> ing to examine whether it needs to be revised in keeping with
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